Gov. Heineman to call for $370M to $500M in tax cuts

LINCOLN, Neb. (AP) — Nebraska Gov. Dave Heineman will call for $370 million to $500 million in tax cuts in his annual State of the State address to lawmakers.

The Republican governor is planning to argue Wednesday that the state can afford the reductions by tapping its cash reserve and maintaining its current average rate of spending growth.

The state's cash reserve sits at $722 million, a record high in terms of total dollars. It was larger as a percentage of the state budget in 2008.

Heineman says he will support a Nebraska Farm Bureau proposal to lower the taxable value of ag-land to 65 percent of its market value, down from the current 75 percent. He also says he will push for reductions in the state income tax.

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